STS Business Budget

I had a conversation with someone defining how businesses dive into bankruptcy. The premise was they take on more than they can handle. Business budgets are just like any other. The bottom line should always be more positive revenue than out-going expense. Just as if you were keeping record of a house budget, if you have more bills to pay than income earned, your bottom line will not balance.

Not to make this budgeting class 101, but there are so many different concepts I am learning about the convenience of having my own company. The benefit packages and the deductions available to me are simply awesome. Beyond that, I have experienced a great deal so far which involves documentation, saving receipts, and writing a business plan that will impress lenders. Having your own company forces you to be independent, organized and financially aware of every penny. What it’s used for, where it will go, when it’s returned , when it will be returned or paid off, how soon will revenue be received and who is responsible if it doesn’t get returned as expected. Just like a house budget, the only difference is, this is not just my money.

Being in business is like running a tight ship and teaching those on board how to be cautious with every move. A few things I have educated myself on thus far; how important it is to keep all receipts as I purchase items, pay off bills, and receive income through S.T.S. If I travel, keep all gas receipts, mileage and create a smart copy; weekly, bi-weekly, monthly or quarterly of each item. Transfer this smart copy to a ledger that shows an account summary of transactions in separate columns. Monthly, transfer the itemized list total into a trial balance query with a debt balance and credit balance that confirms my bottom line, twice. Not to be paranoid, but to the penny accurate.

If your business advertises through traveling, keep all lodging and other purchase receipts as proof your itinerary involved traveling specifically for business. If you make a sale or discuss your business, it can possibly be included as a tax write off. Talk with your accountant of that.

Business tax classes and small business seminars have also been extremely helpful, teaching business owners the basics on double checking the book-keeper and accountant with your own bottom line. Last, but not least it is a necessity to hire an accountant and book-keeper that you know and trust. Not necessarily on a personal level but more on a professional one. I believe it would be extremely inappropriate to hire a friend to work with your bottom line. I have always done my own personal taxes and learned much along the way. Talking with financial institutions and looking information up on-line has been a great help with the new endeavor of the business portion I am now owner of.

Regardless, if math was or wasn’t your favorite subject, when you have a business you will make math, organization and saving money your best friend. Hope this article helps. If not, it will be something I will look back on in a few months to see just how far I’ve come on the financial end of the business.